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Personal finance experts don’t get wealthy by following their own advice

larryludwig.com

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Re: Personal finance experts don’t get wealthy by following their own advice

#151

Post by codyswann »

This article is laughable.

1) Most of the personal finance experts he lists aren’t telling you how to get rich. They’re telling you how not to be poor.

2) Most people do need a coach or a mom or whatever to tell them they can’t afford something. Most people don’t even know how to balance a checkbook or calculate the real interest rate of a credit card.

3) Most people don’t know how compounding interest works.

4) There’s no definition of “rich”

5) I know plenty of people making mid-6 to low-7 figure incomes while “working for someone else” and some retired in their late-40s, early 50s

6) Most businesses fail

Re: Personal finance experts don’t get wealthy by following their own advice

#152

Post by zhdc1 »

wincy wrote: post #43

This seems like a good place to be vulnerable and ask for advice. I am 35 and still spend like in a teenager. I grew up really poor where if the money didn’t get spent right away it would just sort of disappear, into drugs or beer or whatever my mom and stepdad were spending it on. My only real asset is my house which has appreciate significantly in value, but all it would take is one job loss to get me behind on tha…

> Is there anyone here who has gone from being extremely irresponsible with money to having savings? How do I get over the trauma of my grandparents losing millions of dollars in the 2008 financial collapse, which happened right as I came of age? How do I stop “shopscrolling” Amazon until 2 in the morning?

Partner with someone who is disciplined, such as a potential spouse/partner, a friend, or even a support group of people in the same situation.

I know that recommendations are frowned upon here, but also take a look at Brian Johnson/Optimize. Discipline is one of the things they touch on a lot, and unlike other places, they have advice that actually seems to work.

Re: Personal finance experts don’t get wealthy by following their own advice

#154

Post by leetcrew »

giantg2 wrote: post #14
PKop wrote: post #5

Part of the discussion should be, can the 'masses' "Generate income not based on hours worked", "Minimize taxes", and "Leverage time and debt to become wealthy like the personal-finance gurus themselves did?"... in other words, is becoming wealthy possible? It is worth being honest about the false hope these authors are peddling about "becoming wealthy", instead of what they are really advising which is, to become ab…

I think an even deeper question is, is it possible for the masses to get rich and what would the macroeconomics look like? I would think competition and resource scarcity would prevent this.

it depends what counts as "rich". I can imagine a world where everyone has a structurally sound shelter, maybe even a large one. I can't imagine a world where everyone lives in a penthouse apartment overlooking central park (without killing billions of people first).

Re: Personal finance experts don’t get wealthy by following their own advice

#155

Post by jstummbillig »

codyswann wrote: post #151

This article is laughable. 1) Most of the personal finance experts he lists aren’t telling you how to get rich. They’re telling you how not to be poor. 2) Most people do need a coach or a mom or whatever to tell them they can’t afford something. Most people don’t even know how to balance a checkbook or calculate the real interest rate of a credit card. 3) Most people don’t know how compounding interest works. 4) Ther…

> I know plenty of people making mid-6 to low-7 figure incomes while “working for someone else” and some retired in their late-40s, early 50s

Plenty to satisfy what? Why would you bring anecdotes to a gun fight?

Re: Personal finance experts don’t get wealthy by following their own advice

#156

Post by anigbrowl »

hn_throwaway_99 wrote: post #44

I'd just like to point out the irony of the bolded, all caps statement in this article, "You’ll NEVER get rich by working for someone else", the recent HN frontpage article about how Tim Cook got a $750 million payout working for Apple, and that the title of this post is "All Personal Finance Experts Are Liars".

Is he really 'working for Apple', when he's the CEO? It'd be fairer to say he has Apple working for him.

Of course you can get rich (or at least well off) in A Job. but realistically, that almost invariably means becoming a workplace strategist and doing office politics to make sure you outpace your peers, not just performing a job you like and then checking out to focus on your domestic life.

If you are just a diligent and unselfish team member who never tries to elbow your way in front of others, you are very unlikely to become rich just from your job. Wealth tends to flow towards people who are competitive rather than cooperative.

Re: Personal finance experts don’t get wealthy by following their own advice

#157

Post by edoceo »

daveguy wrote: post #136

> Investing that $2.50 you spend every day on a latte in the stock market instead can lead to a life of riches. How’s that for putting a damper on one of the little joys in life? Budgeting will let you realize there are essentially infinite ways to spend your money. You have to decide the best way to do that. If you're trying to make money, buying yourself a latte is not the best way to do it. If you're trying to enj…

Where can I get these cheap lattes? Seattle prices are >$5

Re: Personal finance experts don’t get wealthy by following their own advice

#158

Post by codyswann »

jstummbillig wrote: post #155
codyswann wrote: post #151

This article is laughable. 1) Most of the personal finance experts he lists aren’t telling you how to get rich. They’re telling you how not to be poor. 2) Most people do need a coach or a mom or whatever to tell them they can’t afford something. Most people don’t even know how to balance a checkbook or calculate the real interest rate of a credit card. 3) Most people don’t know how compounding interest works. 4) Ther…

> I know plenty of people making mid-6 to low-7 figure incomes while “working for someone else” and some retired in their late-40s, early 50s Plenty to satisfy what? Why would you bring anecdotes to a gun fight?

Author said “no one gets rich working for someone else” - I would consider all of these people rich.

Re: Personal finance experts don’t get wealthy by following their own advice

#159

Post by wincy »

oramit wrote: post #89
wincy wrote: post #43

This seems like a good place to be vulnerable and ask for advice. I am 35 and still spend like in a teenager. I grew up really poor where if the money didn’t get spent right away it would just sort of disappear, into drugs or beer or whatever my mom and stepdad were spending it on. My only real asset is my house which has appreciate significantly in value, but all it would take is one job loss to get me behind on tha…

This is a really honest comment and my thought reading through it is that there isn't going to be "one quick trick" to help. Your troubles seem multifaceted and not completely about money. Have you considered talking to a therapist?

Maybe I haven’t found the right one yet. The last psychologist wanted to chat about the weather or something. I know I can set goals independently and execute on them. I lost 40 pounds during the pandemic after setting a weight loss goal. But you’re right it is multifaceted. It feels like a game of whacka mole where I put intentionality and care into one part of my life (career, or health) and the other parts languish.

Re: Personal finance experts don’t get wealthy by following their own advice

#160

Post by anigbrowl »

cardosof wrote: post #6
bdcravens wrote: post #3

The biggest takeaway: it's easier to make money than it is to save it, and stacking cash, rather than aggressive budgeting, is the key to wealth.

While I generally agree, I think for many people it's easier to cut 10% of their annual spending instead of getting better return rates or a salary raise.

That's the sad thing though. While many people do spend their way to poverty, personal finance people almost never seem to address the question of how to negotiate/strategize to get more money in the first place. A lot of people semi-rationally conclude that the way to make money is to look successful by driving a new vehicle, wearing nice clothes, and 'fake it til you make it.'
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